Automotive Electronics Market Higher Growth During 2023-2033 – Latest Fact.MR Study
Fact.MR, a market research and competitive intelligence provider, the global demand for automotive electronics stands at US$ 261.8 billion in 2023 and is predicted to reach a market value of US$ 580.5 billion by the end of 2033.
The global automotive electronics market is forecasted to exhibit expansion at a high-value CAGR of 8.2% from 2023 to 2033.
The use of electronics in vehicles has been increasing rapidly in recent years owing to the surging adoption of electrification trends in the automotive industry and the growing integration of advanced electronic systems. Increasing focus on safety and implementation of strict vehicle safety mandates by governments around the world are also slated to benefit shipments of automotive electronics in the future.
- In April 2021, three senators in the United States proposed legislation that was expected to mandate the use of driver monitoring systems (DMS) in all new vehicles within the coming six years and mandate it effectively by 2027.
Increasing digitization, growing sales of electric vehicles, rising investments in research and development of novel auto electrical parts, the substitution of mechanical components with electrical components, and growing per capita spending capacity are some other aspects that could promulgate sales of vehicle electronics across the forecast period.
- As per statistics provided by EVvolumes.com, around 10.5 million new BEVs (battery electric vehicles) and PHEVs (plug-in hybrid electric vehicles) were delivered in the year 2022, which was a 55% increase from the numbers recorded in 2021.
“Automotive Electronics Providers Earmark Growing Autonomous Vehicle Fleet”
Autonomous vehicles are no longer a topic of science fiction and have become a reality with the integration of advanced technologies and advancements in the automotive industry. Increasing investments in research and development of new autonomous vehicles and supportive government initiatives to promote the same are projected to boost demand for automotive electronic components in the United States.
Surging popularity and adoption of Level 2 and Level 3 autonomous vehicles in the country is expected to set the stage for Level 4 and Level 5 autonomous cars in the future, which could boost sales of automotive electrical connectors, automotive capacitors, automotive resistors, and other auto electronic parts through 2033. The growing availability of driverless taxis and expanding autonomous vehicle fleets in the United States are also projected to supplement market growth going forward.
Competitive Landscape
Top-tier automotive electronics companies are focusing on utilizing advanced technologies to create innovative electronic solutions for vehicles. Companies are also expected to adopt strategies such as mergers, partnerships, collaborations, and acquisitions to hasten the development and launch of advanced automotive solutions.
- In March 2023, Texas Instruments, a renowned semiconductor manufacturing company, announced a collaboration with a human insight AI organization called Smart Eye. The collaboration was aimed at working together to provide innovative interior sensing solutions for automakers to enhance driver safety and in-cabin experience.
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